Money

Norman West find 'promising' - Glencore

Peter Xavier, vice president of Sudbury Integrated Nickel Operations, was the keynote speaker at the Greater Sudbury Chamber of Commerce president's series luncheon in Sudbury earlier this month. Gino Donato/Sudbury Star

Norman West, located north of Capreol, is Glencore’s current pearl in the oyster in the Sudbury area, city councillors were told Tuesday.

“We got a pretty significant hit there last year and we’ve been following up ever since, and it’s looking more promising by the day,” said Peter Xavier, vice president of Sudbury Integrated Nickel Operations. “There’s still quite a bit of drilling to do from surface before we get to the next step.”

While the local operations are solid, Xavier did point out a few challenges the company faces. For example, low nickel prices and high hydro costs, as well as regulatory uncertainty around climate change and emissions can cause headaches.

“The current low nickel prices and challenging market outlook, as well as regulatory uncertainty, pose significant hurdles to these projects being realized,” Xavier said in his presentation to council about Glencore’s Sudbury-area operations. “Mining is a cyclical business and we are continuously facing new challenges.”

Xavier highlighted the Nickel Rim South mine, which launched operations in 2010. While that mine serves as the company’s financial base in Sudbury, Xavier said it will be empty in 2021, which presents a challenge.

“Although very valuable in nature in terms of ore grade, it’s somewhat limited in size,” he said. “Over the last few years we’ve tried to extend the operations, but unfortunately our efforts haven’t proven successful. But it’s a world-class operation.”

It is also an efficient mine, using 60 per cent less energy and 30 per cent less water than other mines of its size.

To maximize the amount of ore the company takes from Nickel Rim, they expanded laterally, creating a 2.5 km drift to access a deeper shaft and a two million tonne ore body.

With operations in Sudbury for about 90 years, Glencore - which bought Falconbridge Ltd. a decade ago - has become part of the bedrock of the community.

Xavier said most of the ore being processed locally originates in Quebec. It then crosses the Atlantic to Norway for refining.

As expected, he put the focus on Tuesday on safety. While the company enjoys a solid health and safety record, there was a fatality last year, ending a 14-year streak of which the company was quite proud.

Richard Pigeau, 54, was killed Oct. 20, 2015, when he was struck by a piece of machinery while working in the Nickel Rim South Mine, which is owned by Glencore.

Pigeau’s death resulted in an investigation that involved the union. The company and a supervisor face charges under the Health and Safety Act.

Despite Pigeau’s death, Xavier said the company has seen a “tremendous improvement in bringing down the injury rates in our operations.”

He said safety is paramount for the company.

“We need to be absolutely diligent in this area, given the hazards in our workplace,” Xavier commented. “But we’re proud of that journey. We recognize it’s not zero and the only acceptable thing is zero. We can’t define success any other way.”

Xavier said Glencore uses technology these days to ensure operations are as safe as possible, but as the company moves deeper underground in search of nickel and other minerals, the hazards increase.

“That’s why we fundamentally need to change the way we do business,” he said.